The new business hub will support companies across various industries, from professional services to food manufacturing, keeping the local entrepreneurial spirit alive.

Workspace Australia has set up the hub backed by $3 million from the state government.

Workspace Australia is a charity organisation that offers training, employment and business development opportunities for people across Central Victoria through its business hubs.

The charity manages hubs in Bendigo, Castlemaine, Donald, Dunolly, Eaglehawk, Gisborne, Kinglake and Maldon and aims to improve employment for socially disadvantaged people.

Member for Bendigo West Maree Edwards toured the hub recently and spruiked the opportunities it offered.

"Retaining a business incubator in Castlemaine will reinforce Workspace Australia's footprint in northern Victoria, providing more access to its valuable business and job-creating services," Ms Edwards said.

She said the new hub created 40 local jobs during construction and would deliver an additional 80 jobs when it was operating at full capacity.

"The Castlemaine hub will have a focus on supporting food manufacturing businesses and has commercial kitchen workspaces available that have been tailor-made for the craft food sector," Ms Edwards said.

Up to 40 local businesses will be able to operate out of the new space with some having already moved in, such as the award-winning local pudding makers 'Pud For All Seasons'.

Other companies that will call the space home include Woodley's Pies and electrical engineering company Electrologix.

"I look forward to seeing the unique and exciting businesses that will use this new facility in Castlemaine," Ms Edwards said.

Minister for Regional Development Gayle Tierney said the state government was a proud partner of Workspace Australia.

She said projects like the Castlemaine hub helped "stimulate regional Victoria's local economy".

"They create opportunities for these exciting small businesses to expand," Ms Tierney said.

"Meaningful projects like this help provide real opportunities for local businesses to grow and thrive, and employ people who live nearby."